[ELI5] Why we can just skip the PIN when using our cards?

Question

You know when it gets to the PIN screen, sometimes it’ll say, “Press cancel/enter to continue” and you can just… bypass the PIN. Doesn’t that just defeat the purpose of the PIN?

In: 247

Answer 1

Not every issuing bank and card processor requires it: it’s an optional cardholder verification method.

The merchant may be offered a lower card processing rate by verifying it, but it’s not necessary to submit a transaction